AI is transforming industries, but how prepared is your data to support it? Many industry leaders already understand that data is foundational for an enterprise to function effectively. Yet, as data volumes grow and regulatory requirements evolve, companies can struggle to maintain visibility and control — data risk has become an elevated priority.
Managing data risk effectively isn’t just about reducing vulnerabilities — it’s about building trust, improving decision-making and keeping AI-driven processes aligned with regulatory requirements. With the right governance and security measures in place, chief information security officers (CISOs) can unlock AI’s holistic potential while helping decrease risks.
As AI adoption accelerates, is your organization keeping pace with the data risks? These risks are not just new challenges — they can exacerbate existing weaknesses in data security and governance. AI adoption magnifies these issues, bringing the underlying issues to the surface and causing organizations to question the overall integrity of the AI model due to the lack of data trust.
As AI-powered tools become more embedded in daily operations, security, data and information leaders now face two important priorities:
Data protection and trust have become a top priority for business and technology leaders. In PwC’s 2025 PwC Digital Trust Insights Survey, executives were asked to rank a list of priorities based on areas specific to their roles. Data protection and trust was ranked:
#1 priority of business executives, with 48% ranking data protection and trust as their top cyber investment priority, ahead of tech modernization (43%).
#2 top priority of tech executives, with 28% prioritizing data protection and trust as their second priority behind cloud security (34%).
Yet, many organizations still struggle with their data estate, often making it difficult to enforce governance and security measures.
How much can you trust the data powering your AI? If data is inaccurate, unprotected or exposed to security gaps, AI models can generate misleading insights, introduce compliance risks and compromise sensitive information. Before organizations can unlock AI’s potential, they should first mitigate key data risks, including:
Without addressing these foundational risks, AI-driven tools may introduce more uncertainty than innovation. Many organizations often need a clearer strategy for governing the data that fuels AI — or they risk AI working against them instead of for them.
How can organizations embrace AI and manage data risk? Technology plays an integral role in mitigating risks and strengthening AI readiness. The proper tools can help organizations improve data visibility, enforce security policies and maintain compliance without slowing down progress. A strong data governance and security framework enables AI models to operate on more precise, trusted data while helping reduce exposure to breaches and regulatory failures.
Microsoft’s data security and governance solutions are designed to address these challenges head-on, helping organizations protect their data while enabling AI to function effectively. Microsoft’s capabilities are designed to help reduce key risks organizations can face:
Data quality – Microsoft Purview (Purview) enables organizations to classify, label and manage data across their environment, helping AI models work with precise and trusted data. Sensitivity labeling capabilities help control which data Copilot can access.
Data protection – Microsoft’s security solutions, including Purview’s data security module, help safeguard sensitive information through encryption, policy enforcement and identity management.
Data compliance – Built-in compliance capabilities within Purview help organizations align AI-driven processes with evolving regulatory requirements.
Data exposure – Insider Risk Management in Purview helps detect and prevent unauthorized access, reducing the risk of insider threats and shadow IT. Labeling and data loss prevention controls provide additional safeguards to help reduce insider threats.
By addressing these risks before scaling AI adoption, organizations can deploy AI models that drive growth while maintaining security and trust.
One of the biggest challenges organizations face when adopting AI is content sprawl — unstructured, redundant and outdated information scattered across platforms. Without clear oversight, AI models like Microsoft Copilot may surface or process outdated, irrelevant or even sensitive data, often leading to security risks and unreliable outputs.
Microsoft SharePoint Advanced Management helps organizations gain better control over their data estate, reducing risk and improving AI-driven decision-making. Key capabilities that support AI governance include:
By integrating SharePoint Advanced Management into their governance strategy, organizations can reduce data exposure, enhance AI model precision, and maintain compliance while enabling more effective and secure AI adoption.
Beyond governance, Microsoft’s broader security ecosystem helps organizations mitigate data risks and protect AI-driven workflows. Microsoft Sentinel (Sentinel) provides centralized reporting and real-time threat detection, while Microsoft Entra (Entra) enforces secure access controls. Security Copilot accelerates incident response by using AI to analyze threats and automate risk mitigation. Together, these tools strengthen data protection, improve compliance readiness and help reduce AI-related vulnerabilities.
As AI becomes more embedded in business processes, organizations should address data security, governance and compliance challenges to help prevent risks from escalating. Taking the following steps can help build a strong foundation for AI-driven innovation while decreasing exposure to threats and regulatory concerns:
By proactively addressing these areas, organizations can confidently deploy AI while maintaining strong security, governance and compliance controls.
Protect your organization from data risks with these five key steps. Stay ahead of the threat landscape and safeguard your business with expert strategies.